FOREX-Dollar dips as European manufacturing data in focus

Reuters

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 (New throughout, updates prices, market activity and comments
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LONDON)
    By Karen Brettell
    NEW YORK, April 15 (Reuters) - The dollar was modestly
weaker against the euro on Monday as investors focused on
European manufacturing data due on Thursday for signs that
growth in the region is improving.
    "The pace of deterioration in that part of the world has
begun to ebb and I think investors are waiting for more concrete
signs that we may have passed the worst," said Mazen Issa,
senior FX strategist at TD Securities in New York.
    Improving European data would likely bolster risk appetite
and send equities prices higher. That in turn could be negative
for the greenback as investors chase higher yielding
opportunities elsewhere.
    "The dollar has shown a fairly strong relationship with
relative equity prices for the U.S. versus the rest of the
world, and to the extent that we move into an environment where
non-U.S. asset markets begin to perform ... we may see a
tactical move lower in the dollar," Issa said.
    Although the dollar tends to underperform when risk appetite
grows, data on Friday showed speculators bolstered their net
long dollar position in the latest week. It's now at its highest
level since December 2015, while traders remain short the euro.
 urn:newsml:reuters.com:*:nL1N21U1J1
    Data on Friday showing that China's exports rebounded in
March while new bank loans rose more than expected helped boost
risk appetite on Monday.  urn:newsml:reuters.com:*:nL3N21S1F8 urn:newsml:reuters.com:*:nL3N21Q1YT
    Investors are also focused on U.S.-China trade talks, with
any deal between the two countries seen as likely to remove
headwinds to global growth.
    U.S. Treasury Secretary Steven Mnuchin said on Saturday a
U.S.-China trade agreement would go "way beyond" previous
efforts to open China's markets to U.S. companies and hoped that
the two sides were "close to the final round" of negotiations.
 urn:newsml:reuters.com:*:nL1N21V0CY
    U.S. negotiators have tempered demands that China curb
industrial subsidies as a condition for a trade deal after
strong resistance from Beijing, according to two sources briefed
on discussions, marking a retreat on a core U.S. objective for
the trade talks.  urn:newsml:reuters.com:*:nL1N21X01T
    
    ========================================================
    Currency bid prices at 9:33AM (1333 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1305        $1.1301     +0.04%         -1.43%      +1.1321     +1.1296
 Dollar/Yen       JPY=        112.0500       112.0000    +0.04%         +1.62%      +112.0900   +111.8900
 Euro/Yen         EURJPY=     126.70         126.56      +0.11%         +0.38%      +126.7800   +126.4900
 Dollar/Swiss     CHF=        1.0031         1.0022      +0.09%         +2.21%      +1.0032     +1.0010
 Sterling/Dollar  GBP=        1.3114         1.3081      +0.25%         +2.80%      +1.3119     +1.3067
 Dollar/Canadian  CAD=        1.3307         1.3320      -0.10%         -2.42%      +1.3347     +1.3297
 Australian/Doll  AUD=        0.7176         0.7171      +0.07%         +1.80%      +0.7182     +0.7164
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1343         1.1324      +0.17%         +0.79%      +1.1346     +1.1325
 Euro/Sterling    EURGBP=     0.8620         0.8636      -0.19%         -4.05%      +0.8649     +0.8619
 NZ               NZD=        0.6759         0.6760      -0.01%         +0.63%      +0.6782     +0.6758
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.4863         8.4869      -0.01%         -1.76%      +8.5010     +8.4807
 Euro/Norway      EURNOK=     9.5970         9.5918      +0.05%         -3.11%      +9.6164     +9.5856
 Dollar/Sweden    SEK=        9.2469         9.2691      -0.16%         +3.16%      +9.2753     +9.2437
 Euro/Sweden      EURSEK=     10.4580        10.4750     -0.16%         +1.89%      +10.4795    +10.4569
 
    
    

 (Additional reporting by Tommy Wilkes in London
Editing by Paul Simao)
 ((Karen.Brettell@thomsonreuters.com; +1 646 223 6274; Reuters
Messaging: karen.brettell.reuters.com@reuters.net))

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